HELOC Questions for "Investment Property"
Investor · Cincinnati, OH · Member since 2022 · 47 posts · 22 votes
Hey y'all, I owner occupied and house hacked my current residence for nearly a year and am looking to open a HELOC on it. I am moving out to do the same thing all over again but would like to access the equity built in it already from this crazy market to value add my new place. Anyone know of banks/lenders/credit unions that will offer a product for an "investment property" (technically since I'm not going to be living there anymore) up to 90% LTV? I've reached out to a couple credit unions but they seem hesitant/have stipulations for "investment properties" for example providing only 70-80% LTV on HELOC products. Any input appreciated, thank you!
Hey @Bret Halsey, So most lenders are going to cap your LTV and CLTV on investments at 80%, just not common to go higher and even if they do the rates get crazy because they have a higher risk so they offset it with more interest. I would recommend staying at the 79.999% loan to value to keep the rate down. Even though I do this job for a living the best HELOC I have seen is with PENFED and they will do it on an investment with a rate at prime + 1.5% which is really good. If you keep the line open for 3 years they cover almost all the costs as well.
I would look at that as that is where I am going to get my heloc from to reno my current property and finance the purchase of the next property. Obviously not financial advise, just what I am doing.
Hey y'all, I owner occupied and house hacked my current residence for nearly a year and am looking to open a HELOC on it. I am moving out to do the same thing all over again but would like to access the equity built in it already from this crazy market to value add my new place. Anyone know of banks/lenders/credit unions that will offer a product for an "investment property" (technically since I'm not going to be living there anymore) up to 90% LTV? I've reached out to a couple credit unions but they seem hesitant/have stipulations for "investment properties" for example providing only 70-80% LTV on HELOC products. Any input appreciated, thank you!
Hey Brett,
I shopped around a bit for this, and the only local place I found that would do a HELOC on a rental property was America First Credit Union (there may be other places that do it, but AMFCU was the only local one I could find). Of course, there are plenty of places that will do a HELOC on your primary residence. Hope that helps!
Hey @Bret Halsey, So most lenders are going to cap your LTV and CLTV on investments at 80%, just not common to go higher and even if they do the rates get crazy because they have a higher risk so they offset it with more interest. I would recommend staying at the 79.999% loan to value to keep the rate down. Even though I do this job for a living the best HELOC I have seen is with PENFED and they will do it on an investment with a rate at prime + 1.5% which is really good. If you keep the line open for 3 years they cover almost all the costs as well.
I would look at that as that is where I am going to get my heloc from to reno my current property and finance the purchase of the next property. Obviously not financial advise, just what I am doing.
I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were largely sourced pre-CV19, so eat the fish and spit out the bones.
Try local community bank or credit union for investment properties. PenFed FCU, TD Bank and US Bank are my best recommendations.
CMG Financial in Idaho will do 100% on owner occupied.
PenFed pulls Equifax for their HELOC. Best in the game, better than Navy Federal.
The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bancorp South, TX Lines of Credit on free and clear houses
Bank of Southern California, CA
Bank of West (BNP Paribas) 60% LTV CA, AZ, OR
BB&T will loan on a rental portfolio
BBVA, now PNC
BECU for OR
Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing Employee Credit Union
Cal Coast Credit Union, CA
Citizens Bank -MiN, only in-state. Kyle Potswald
Citizens, first position HELOC
Coastal Federal Bank of NC
CMG Financial 70% LTV
Consolidated CCU, high LTV NOO LOC, OR, WA
East West Bank, up to 60% LTV with "no docs” San Fran CA area
Figure 80% on a rental, not in LLC
Finance of America, 95% CLTV, second home only, 680 FICO, not TX
FirstBank CO and AZ 75% LTV
First Florida Credit Union FL
First Commonwealth
First Midwest, IL up to 90% Chicago area
First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.
First Republic - CA
Fremont Bank- CA
Frost Bank - TX
Fulton Bank, PA, NJ
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH
Granite State CU, NH 90-100%
Great Lakes Credit Union, Chicago area IL
GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property
Hanscom FCU, TX
HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,
Horizon Bank, Kalamazoo MI
Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
KeyBank, flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID
Merchants Bank MN See Pavel Ushakov
Mid-Hudson Valley FCU
Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term “Mini Mortgage.”
Navy Federal 80% LTV
Norway Savings Bank, Maine
Omaha Mortgage
Oregonians CU - OR
PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties
Peoples Bank of NC
PSECU up to 80%
Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period.
Red Canoe Credit Union, WA OR
Regions
River Bank & Trust, AL
Rivermark Credit Union, OR 90% LTV
SCCU Florida 80% LTV, 2.75% first year promo, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV (100% on primary residence), VA
Silvergate Bank, CA
Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.” CT
SouthEast Bank TN
S&T Bank, PA
TCF Bank, FL, GA
TD Bank 75% line with FICO about 740. Up to 4 properties.
Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.
Troy Bank & Trust, AL
Trustco Bank, FL, NY, NJ, MA, VT
Trustmark Bank, Texas. Call it a LOC rather than a HELOC
Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”
Vectra Bank - Colo
Veritex, Texas HELOC
WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.
WellsFargo 60% LTV Up to 5 properties.
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
NO: Truist
Wow thank you for the info! Will definitely look into these more to see if they can provide what I need.
Hi there. I have an outlet for HELoans (fixed rate at 7/8%) for 30yr fixed at 90% LTV on investment properties. Let me know if you're interested! Also what state, it's not available in all 50.
Hey Marie, I would be interested in those products! I'm mostly concerned with getting access to the higher LTV and I understand it comes with higher rates on investment properties. Would it be offered in Utah?
Hi! I just checked and yes it appears to allow Utah :)